Gary Friedman: Yeah, the underlying model, I think we’ve already said it can withstand a 20% down and probably hold the margins around 20%. So that doesn’t necessarily mean that’s what we’re going to do, that we’re going to pull back investments when we should be investing. So right now, again, I don’t think the idea here — I don’t think it’s strategic to go, hey, let’s have 20% operating margins in 2023. I don’t think a lot of people get up in the morning and go to work and fight for 20% operating margins. They get up and they go fight to do incredible inspiring work that they think is going to create great long-term opportunity. And if we didn’t have a whole lot of things to do, we didn’t have a lot of great ideas that we’re pursuing right now.
Yeah, am I say, hey, you know what we don’t have anything that’s really that big worth investing in. So like let’s, here we go, let’s hit 20% operating margin. Let’s make that the goal, but we have some incredible stuff what we’re working on. The most exciting stuff we’ve ever worked on by far. And the kind of stuff that you’re so excited, you don’t — you can’t sleep, you can’t even go home, you’re just so excited. And we have groups of people that are here have been through all kinds of hours, like figuring stuff out because the work is really that special. So we’re investing in that work as we think that work will change the vector and will change everything and will create massive strategic separation. So we’re not really looking at. I wouldn’t say if you said, hey, Gary, is your focus on financial outcome in 2023?
Not really. Our focus is on creating a leapfrog in 2023 and 2024 that when we come out of this cycle, that people look around and go, where did they go? That we’ve just made such a leapfrog that we’re so much farther ahead of everybody else on every level. And that will create big returns. And we know how to create big returns. We built the best model in the industry. So we’re going to do things that make the model better. But you can’t do that by not investing and go, okay, we’re 20, let’s hang on, let’s do less. That’s the downward spiral. That’s the long-term death spiral. And that’s not the game we play.
Curtis Nagle: Understood. Thanks very much and happy holidays.
Operator: Our next question comes from the line of Jonathan Matuszewski from Jefferies. Please proceed.
Jonathan Matuszewski: Great. Good afternoon and thanks for taking my question. Gary, you mentioned 2023 will mark the largest introduction of new products in company history. So how should we be thinking about your Source Book strategy next year? How are you thinking about mailings relative to maybe this past year, given all the new product launching? And should we be planning for elevated Source Book costs, that’s my first question. Thanks.
Gary Friedman: Yes, you should. And probably a big advertising campaign that I think it’s the best work we’ve ever done. So we’re going to shout from the rooftops.
Jonathan Matuszewski: Got you. And then my follow-up question on supply chain. Can you help us understand the cadence of how supply chain cost tailwinds may flow into gross margin next year? The reason I ask is, I think 70% of your cost of goods sold is sourced from Asia. So how should we be thinking about the timing once we’re on the other side of elevated inbound container rates next year? Any color there would be helpful. Thanks.
